JSE seeks partnerships as volumes decline

The Johannesburg Stock Exchange (JSE) has been actively implementing measures to address the decline in listed companies and revive the Initial Public Offering (IPO) market. In a recent interview with CNBC Africa, Sam Mokorosi, Head of Origination and Deals at the JSE, discussed the strategies being employed to boost listings and attract new companies to the exchange. Mokorosi highlighted the global trend of declining listed companies and emphasized the importance of encouraging more companies to list and retaining existing ones. He outlined various initiatives undertaken by the JSE to simplify listings requirements, introduce new products like dual class voting shares and infrastructure Real Estate Investment Trusts (REITs), and engage with potential listings globally. The exchange has been proactively seeking partnerships and exploring opportunities in regions like the UK, Poland, Germany, Luxembourg, New York, Singapore, and Hong Kong. These efforts have started to yield results with companies like Primary Health Care Properties and Copper 360 listing on the exchange. Despite challenges posed by a slow-growing economy, Mokorosi remains optimistic about the future of listings at the JSE. He acknowledged concerns about the cost of listings but clarified that most of these costs are dictated by external factors beyond the JSE's control, such as regulatory requirements and advisory fees. Looking ahead to 2024, Mokorosi expressed expectations of more companies listing on the exchange, with a focus on companies that have expressed interest in going public. He anticipates an uptick in listings in the second half of the year, post the elections, and highlighted Asia as a key target for inward listings next year. Overall, the JSE remains committed to fostering a conducive environment for listings and driving growth in the IPO market, setting the stage for a promising future.